Economy

Trade unions fault candidates’ proposals on minimum wage

mudavadi

Musalia Mudavadi and Paul Muite during Monday’s presidential debate. Trade unionists criticised candidates for not providing specific proposals on the ideal minimum wages. Photo/File

Trade union officials have criticised the eight presidential candidates for failing to propose a clear policy on minimum wage even as they welcomed the pledge to cushion citizens from external forces that drive up the cost of living.

Most of the officials told the Business Daily that a minimum wage would provide some form of insurance against exploitation of a huge number of workers who are not represented by unions.

“We waited anxiously for the answer but were disappointed that all of them avoided this question and would not tell us what to expect from them after taking office,” said Kenya Plantation and Agricultural Workers Union deputy secretary-general Thomas Kipkemboi.

Though impressed by the candidates’ appreciation of forces that push up cost of living, Mr Kipkemboi said he expected a minimum pay of between Sh10,000 and Sh15,000, a marginal increase over the current rate of Sh8,000 to Sh10,000 for various category of workers.

“Because we have to buy goods and services at the same prices as those who earn super salaries, the minimum wages would give us each candidate’s sense of fairness especially to workers with no trade unions,” he said.

At the second presidential debate held on Monday, only Safina candidate Paul Muite came close to mentioning a minimum wage. “I will fix the minimum wage to be that which allows workers to buy basic items and still retain some cash to live a decent life,” he said.

Kenya lacks a clear wage policy, said Amani candidate Musalia Mudavadi.

“The Sh8,000 cannot sustain workers given that 70 per cent of its end in food purchases,” he said.

Mr Mudavadi said his government would expand agriculture to make food cheaper and pursue policies to reduce burden that consumer face in meeting electricity and fuel cost.

The rest, keen to please both the employers and the trade unions, declined to propose minimum wage even as each vowed to invest in programmes to boost productivity and living conditions of workers.

Though the minimum wage decree is only meant to affect public sector employees directly, the labour market as a whole takes it as an indicator of minimum pay to attract comparable skills and experience.

Through their lobby, the Federation of Kenya Employers (FKE), employers have frequently criticised minimum wage thresholds and called for its abolition. They instead prefer a flexible policy that allows firms to review wages according to economic conditions.

(Read: Lowest paid workers get 13 per cent wage increase)

Kenya’s labour cost the highest in East Africa and FKE has warned that further increments only make local goods uncompetitive in the global market while rigid policies such as minimum wage discourage job creation.

“I would go for a living wage that reflects the price of goods in the shopping basket (Consumer Price Index) but the cost of living itself is not static and must be reviewed regularly by Salaries Review Commission (SRC) after tripartite negotiations,” said Cord presidential candidate Raila Odinga.

Jubilee flag bearer Uhuru Kenyatta said: “We’ll not only ensure that wages are made to vary with cost of living but also focus on reducing cost of items such as foodstuff to ensure each employee has a decent living.”

Generally, a minimum wage is the lowest hourly, daily or monthly remuneration that employers are legally bound to pay workers.

Traditionally, Kenya’s statutory minimum pay has always been fixed by the General Wages Advisory Board, Agricultural Wages Advisory Board or any other sectoral council established by Labour minister.

The rate agreed upon is then communicated as a ritual and highlight of the Labour Day celebrations.

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